March 24th, 2015 6:12am GMT, London UK
Today’s Binary Options Trading Strategy:
• Currency Pair: EURJPY
• Timeframe: H4 (Hourly Chart)
• Binary Option Trading Recommendation: Seek binary call options on dips below 130.800
• Upside Potential: The upside potential for this binary call option is 480 pips to 135.600
• Downside Potential: The downside potential for this binary call option is 180 pips to 129.000The EURJPY is in the middle of an advance after this currency pair reached an intra-day low of 126.899 on March 13th 2015. This level has formed the ascending support level of its bullish price channel which has guided the EURJPY to the upside. The ascending resistance level was formed by its intra-day high of 128.997 which was reached on March 12th 2015. The bullish price channel has already pushed the EURJPY above its descending resistance level which originates from its intra-day high of 135.662 recorded on February 24th 2015.
Price action is currently trading near the top of its horizontal support level and above its descending resistance level. The EURJPY is expected to continue its move to the upside until it will reach its horizontal resistance level and can challenge its intra-day high of 135.662. Binary options traders can take advantage from the anticipated advance with binary call options. Today’s binary options trading strategy suggests call options to be placed on dips below 130.800 for a risk/reward ratio of 1.0/2.67.
Volatility decreased during the move away from its intra-day high of 135.662 and was further depleted as the bullish price channel allowed for an orderly advance. An increase in volatility is expected as the EURJPY is approaching the top of its horizontal support level from where sellers are likely to prevent a breakout from developing. Buyers are expected to take advantage from its bullish price channel as well as its horizontal support level and further push this currency pair to the upside. This favors binary call options in the EURJPY currency pair.
The EURJPY will face its first resistance level, after a successful breakout above its horizontal support level, at its intra-day high of 131.732 which was recorded on March 18th 2015. This level marks the high reached during a previous price spike. A breakout above this level will take the EURJPY to its intra-day high of 134.595 which was reached on March 2nd 2015. This level marks the bottom of its horizontal resistance level. The final resistance level is located at its intra-day high of 135.662 which was reached on February 24th 2015.
The following economic data out of the Eurozone is expected to impact the base currency, the Euro, of the EURJPY currency pair:
Preliminary Eurozone PMI for the month of March:
• Expectations: A level of 53.6 is expected for the Eurozone Composite PMI in March, a level of 51.5 in the Eurozone Manufacturing PMI and a level of 53.9 in the Eurozone Services PMI
• Previous Report’s Data: A level of 53.3 was reported for the Eurozone Composite PMI in February, a level of 51.0 in the Eurozone Manufacturing PMI and a level of 53.7 in the Eurozone Services PMI
• Impact on the Euro: The anticipated increase in the Eurozone PMI is likely to apply upward pressure on the Euro which favors binary call options in the EURJPY currency pair
In addition the following economic report out of Japan is expected to impact the quote currency, the Japanese Yen, of the EURJPY currency pair:
Small Business Confidence for the month of March:
• Expectations: A level of 48.0 is expected for the month of March
• Previous Report’s Data: A level of 46.5 was reported in the month of February
• Impact on the Japanese Yen: The expected increase in Small Business Confidence is likely to be overshadowed by economic data out of the Eurozone; this favors binary call options in the EURJPY currency pair